Judgment Execution Immunity for Diplomatic Property

Judgment creditor Republic of Argentina won an important argument on the timing of execution immunity when it defeated a proposed attachment of the ambassadors former residence. The residence was put up for sale and the plaintiff in TIG Insurance Co. v. Republic of Argentina filed for its attachment to partially satisfy arbitral awards. Before the court issued the writ of attachment, the defendant pulled back from the sale. At issue in the decision of the United States District Court for the District of Columbia of July 10, 2019 is when and for how long the property had a commercial quality, allowing for attachment under the exception in 28 USC §1610 to execution immunity under the Foreign Sovereign Immunities Act. The court explained:

The parties’ sole dispute is the relevant time for assessing execution immunity. TIG contends that a foreign state's property may be attached as long as it was "used for a commercial activity" at the time a motion for a writ of attachment was filed. Argentina, on the other hand, argues that the commercial activities exception applies if the property is "used for a commercial activity" at the moment a writ of attachment issues. Text, structure, history, and precedent support Argentina's reading: a property is immune from attachment unless it is "used for a commercial activity" at the time a writ of attachment issues.
After explaining its analysis and applying precedent, the court denies TIG's Motions for Emergency Relief, Attachment-Related Relief, and a Writ of Execution. -- Clemens Kochinke, partner, Berliner Corcoran & Rowe LLP, Washington, DC.
Disclaimer: The author's law firm assists embassies with FSIA matters and has represented such defendants at the appellate and Supreme Court levels.

Thu, 21:19:20 11 Jul 2019 / Embassy Law Link